Village of Grafton Tax Bills Deserve a Break - NO TIF for the Proposed Industrial Park!
This petition had 451 supporters
The Village of Grafton is proposing to annex 114+ acres of Town of Grafton land (east of I-43 on the north side of Highway 60 / County Highway Q near the intersection of County Highway C) for future industrial park development. While well-planned, calculated growth is good for our Village tax base, the Village Board is proposing that this development be implemented by use of Tax Incremental Financing (TIF).
The purpose of this petition is to express opposition to the Village of Grafton’s intent to create a new Tax Incremental Financing (TIF) District for this proposed industrial park.
What is TIF and its Basic Function? Tax Incremental Financing (TIF) generates tax revenue that can only be used to fund infrastructure investment and other eligible projects that will facilitate private development. Through the use of TIF, municipalities typically divert future property tax revenue increases from a defined area toward an economic development project or public improvement project in the community. TIF was originally designed to channel public funds toward improvements in distressed or underutilized parts of a jurisdiction where development might otherwise not occur. When a Tax Incremental District (TID) is created, the current value of all the taxable property is frozen for the life of the TID (typically 20 – 30 years). Taxes collected on this frozen (TID Base) portion of the property value are shared by the overlying taxing jurisdictions (schools, county, etc.) as they always have been. Meanwhile, new construction and investment increase the value of the property. All of the taxes collected on the growth in value of the property (or the "value increment") are utilized only to pay for the improvements made to the property. At the end of the TID period (or TID termination) the entire value of the property that was in the TID is returned to the tax rolls of the overlying taxing jurisdictions; it could be 20-30 years before the taxing jurisdictions see any increased revenue on the investment for other uses such as schools. For more information visit https://www.revenue.wi.gov/DOR%20Publications/1-2.pdf
What is Important to Remember About TIF? According to the Wisconsin Department of Revenue, "One key basis for the use of TIF is the "but for" test. As part of all creation resolutions, a municipality must affirm that the development would not happen "but for" the use of TIF. The municipality must believe that without TIF the development would never happen. This test is important to ensure TIF assists development projects needing help, but that it is not a gift of tax dollars to private developers or property owners."
The Primary Reasons for Our Opposition to the Village of Grafton’s Creation of a New TIF District are the Following:
- The proposed use of a Tax Incremental Financing (TIF) district for the planned industrial park is contrary to the best interests of the taxpayers of the Village of Grafton, the Grafton School District and the community as a whole. The primary beneficiary of the TIF will be the commercial developer. Village of Grafton taxpayers deserve a break – don’t gift our property tax dollars to a private developer if it isn’t warranted!
- Establishing a new TIF District for the planned industrial park does not conform to the intent of applicable Wisconsin State Statutes. TIFs are intended to help communities reclaim distressed, polluted or blighted areas. The State Statutes permitting the creation of TIF Districts was never intended to be used as an incentive to entice a developer to develop prime unblemished land like the land proposed to be annexed from the Town of Grafton. The developer of this project was recently quoted in the newspaper as saying that this proposed building site is “head and shoulders” above the rest. How does this comment stand up to the “but for” test?
- The Grafton School District is unlikely to benefit from utilizing a TIF District for the proposed industrial park. Any tax revenues to the schools from the industrial park will not occur for years to come. School revenues are dependent upon property valuations and the enrollment of more students. The development of an industrial park on land which is much better suited for homes with families compromises potential valuations and enrollments. The development of an industrial park on what can and should be prime residential property does not serve the future interests of the Grafton School District.
- The Town of Grafton Board of Supervisors is in opposition to the proposed industrial park and annexation, and recently passed a resolution against it: Town of Grafton Resolution 2018-05: A Resolution Objecting to the Village of Grafton’s Pronounced Intent to Annex Town of Grafton Land for Industrial / Business Park Use. See the full text here: http://townofgrafton.org/uploads/ckfiles/files/Res%202018-05%20Signed.pdf
THEREFORE, WE, the undersigned VILLAGE OF GRAFTON TAX PAYERS, strongly oppose the use of the Tax Incremental Financing (TIF) funding mechanism for proposed development of a Village of Grafton Industrial Park along the northside of Highway 60 / County Highway Q near the intersection of County Highway C.
SPECIAL NOTE: You must be a VILLAGE (not TOWN) of Grafton taxpayer to sign this petition, and MUST enter your property address after your LAST NAME (example - SMITH: 123 North Street) to confirm that information.
If you are a TOWN OF GRAFTON taxpayer, go here to sign the Town of Grafton Residents’ Petition: https://www.change.org/p/town-of-grafton-residents-town-of-grafton-residents-oppose-the-development-of-a-village-of-grafton-industrial-park
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